ACI Worldwide, Inc. Reports Financial Results for the Quarter and Year Ended December 31, 2013

ACI Worldwide, Inc., a provider of electronic payment and banking systems, has announced financial results for the period ended December 31, 2013.

“ACI has finished an important transitional year,” commented Phil Heasley, ACI President and CEO. “The integration of Online Resources is substantially complete, Official Payments is on schedule and our EBPP business is performing better than expected. Our Universal Payments strategy came to fruition in 2013 and we have seen encouraging interest in the marketplace. Our overall pipeline is at record levels and we have enhanced our financial guidance. We are very confident our efforts have positioned us to successfully take advantage of significant opportunity in 2014 and beyond.”

Q4 FINANCIAL SUMMARY

Revenue in Q4 was $283 million, an increase of $59 million, or 26%, above the prior-year quarter.

New sales bookings, net of term extensions (SNET), increased 25% compared to the prior-year quarter. Excluding the contribution from Online Resources and Official Payments, SNET increased 13% in Q4, compared to last year’s quarter.

Operating income was $86 million for the quarter, an increase of $10 million, or 14%, above the prior-year quarter. Q4 adjusted EBITDA of $117 million was 15% above the prior year’s $101 million.

Net income for the quarter was $50 million, or $1.28 per diluted share, compared to net income of $50 million, or $1.24 per diluted share, during the same period the prior year. Operating free cash flow in Q4 was $62 million, up from $24 million in the prior-year quarter.

FULL YEAR 2013 FINANCIAL SUMMARY

Revenue for the full year 2013 was $865 million, an increase of $198 million, or 30%. The acquisitions of Online Resources and Official Payments contributed $144 million of GAAP revenue to the full year. Non-GAAP revenue for the full year 2013 was $871 million, up 26% from the prior year’s $689 million. These figures include $6 million and $22 million, respectively, in deferred revenue not reportable under GAAP purchase accounting requirements.

New sales bookings, net of term extensions (SNET) for the year was $600 million, up 20% from $501 million in 2012. Excluding the contribution from Online Resources and Official Payments, SNET grew 7% compared to the prior year.

Operating income for the full year 2013 was $123 million, versus $74 million for the full year 2012. Non-GAAP operating income for the year was $155 million, up 21% from the prior year’s $128 million. Adjusted EBITDA of $239 million for the year grew 25% from the prior year’s $191 million. Non-GAAP figures include $6 million and $22 million of deferred revenue adjustments due to purchase accounting and exclude one-time acquisition-related expenses of $26 million and $31 million in 2013 and 2012, respectively. Excluding pass through interchange revenues of $38 million in 2013, net adjusted EBITDA margin represented 29% of revenue in the 2013, versus 28% in 2012.

Net income for the year ended December 31, 2013 was $64 million, or $1.60 per diluted share, compared to net income of $49 million, or $1.22 per diluted share, in the prior year. Non-GAAP net income for the year was $85 million, or $2.11 per diluted share, versus $84 million, or $2.10 per diluted share for 2012. Operating free cash flow for the year was $151 million, up from $24 million the prior year.

We ended the year with a 60-month backlog of $3.9 billion, adjusted for foreign currency fluctuations, up 24% from last quarter. Similarly, our 12-month backlog increased to $870 million. Official Payments contributed $696 million and $142 million to 60- and 12-month backlog, respectively.

As of December 31, 2013, we had $95 million in cash on hand, a debt balance of $755 million, down slightly from last quarter’s $764 million. We repurchased $81 million of our stock during 2013.